Article

Demand for space has never been stronger

WAREHOUSING
Demand for space  has never been stronger

The need to meet same-day and next-day expectations has had a major impact on how warehouse and DC space is sought, secured and managed.


WHILE NOT without challenges, the US economy continues to expand at a pretty healthy clip say economists – and a hearty consumer appetite for e-commerce is helping to lead the way. Today,

consumers both demand and expect fast deliveries, a precedent set by Amazon’s investment in next- and same-day deliveries, a fact that has greatly affected how warehouse and distribution centre (DC) space is now sought, secured and managed.

Demand for this real estate sector (a sub-sector of industrial product) is very high, with vacancies registering today around 4.3 percent – the lowest ever. Historically, vacancies have hovered between 8 and 9 percent. “We’re seeing this trend across the Americas, regardless of region or market size, says Tray Anderson, Logistics and Industrial Lead with real estate brokerage giant Cushman & Wakefield. “This is all driven by the fact that companies are now pursuing direct fulfillment for the first time, while promising shorter delivery windows for customers.”

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Written by: Karen E. Thuermer, courtesy Logistics Management
Date: 01 May 2020

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